Summer heat puts a crimp in the natural gas supply build

Last week’s surprisingly strong 120 bcf per day weekly EIA build number gave way to a more modest 65 bcf, about half the prior week’s level. Hotter summer temperatures are settling in across the country for July with summer in full swing. Although stocks [...]

Crude oil suffers setback

As states slowly begin the process of reopening, fears of a secondary outbreak of COVID-19 coupled with rising domestic crude oil inventories halted an energy price advance and sent prices lower. Brent crude prices fell this week by 5 percent, and WTI (West Texas [...]

Ethanol use continues upward climb

For the week ending May 22, ethanol production continued its upward trend to 724,000 barrels per day (bpd), a four-week high but down roughly 32 percent from this time last year. Weekly production rose each week in May. Ethanol use by blenders and refiners averaged [...]

Dollar’s rise during stay-at-home orders

Given its spread across borders, the COVID-19 global pandemic could be described as an equalizing force, at least from an economic perspective. Yet, considering its influence on foreign exchange rates, the pandemic’s economic impact has not been shared equally. The U.S. dollar index, a [...]

Corn futures slide as ethanol misery continues

The erosion in ethanol demand continues, with production during the week of Apr. 10 hitting a ten-year low, averaging just 570,000 barrels per day and down about 44 percent vs. last year. About half of U.S. ethanol plants have shut down, including Valero announcing [...]

Dollar consolidates after correcting off multiyear highs

In the second half of March, the U.S. dollar index spiked to its highest levels since late 2002. The index corrected lower in a six-session slide, finding support near its 20-day moving average. Despite some contrarian views, the dollar clearly remains the world’s preferred [...]

Natural gas: New highs & lows for the year

The COVID-19 pandemic and the accompanying price collapse across commodities comes as no surprise, and some longer-term implications can already be discerned with a little bit of digging. The rolling nearby contract for natural gas has fallen 25 percent on the NYMEX Apr-20 contract [...]

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